Global diversified miner Anglo American PLC (AAL.LN) this week looked to distance itself from suitor Xstrata PLC (XTA.LN) by highlighting progress on and potential production from its major growth projects in South America.

Xstrata in June proposed a "merger of equals" with Anglo American where no cash would change hands and shareholders from each miner would end up with half of the combined company. Anglo rejected the tie-up and Xstrata now faces an Oct. 20 deadline to make a formal offer or walk away for six months.

Anglo didn't name Xstrata in its presentations but a cornerstone of its defense has been long-term growth potential, particularly its Los Bronces copper project in Chile and its Barro Alto nickel and Minas Rio iron ore projects in Brazil.

"Anglo American has prioritized investment in the development of its three key near-term strategic growth projects during the economic downturn in order to position the group to capitalize on the next phase of global economic growth," it said Thursday.

Minas Rio is the biggest and most complex of the projects. It has come in for particular scrutiny due to its price tag - the miner paid $6.65 billion to acquire it - and delays gaining necessary permits.

Anglo has budgeted another $3.6 billion for phase one of the project, which is on track for first production in the second quarter of 2012 and output of 26.5 million tons of iron ore in 2013.

"Overall the trip gave us the comfort that this project was on track, but still had some permitting risk," Liberum Capital said in a note to clients.

Morgan Stanley analyst Ephrem Ravi estimates that completion of the project's phase one would add 220 pence in value to Anglo's share price at a long-term iron ore forecast of $50 per ton.

"And we think Phases II and III can more than double that depending on timing," Ravi said.

Xstrata declined to comment on Anglo's investor trip.

A merger of the two miners would create a $90 billion company and the world's biggest producer of thermal coal, platinum and ferrochrome, and a top-tier producer of copper, nickel, coking coal and iron ore.

Xstrata argues that the new company would generate at least $1 billion a year in cost savings, and be better positioned to compete against larger peers such as BHP Billiton Ltd. (BHP).

Company Web sites:

www.angloamerican.co.uk

www.xstrata.com

-By Jeffrey Sparshott, Dow Jones Newswires; +44 (0)207 842 9347; jeffrey.sparshott@dowjones.com